There are two methods of claiming car expenses on your individual tax return.

1. Cents per Kilometre
2. Logbook Method

Car expenses are deductible for work-related travel using your motor vehicle. Driving to and from work is considered a private journey and is generally not tax deductible.

Some examples of work-related travel are:

• Travel to meet with a client or supplier
• Travel to work-related conferences, meetings or training
• Travel between two jobs
• Travelling to alternate work sites
• Travel from home to work whilst carrying bulky tools and equipment

Below are a few more details regarding claims.

Cents per Kilometre

• Capped at 5,000 km
• Has a fixed rate of $0.91 per km in the 2026FY, with no difference based on the size of the motor
• 

Logbook Method

• Logbook needs to be completed for a 12-week period.
• Details needed:
• Tax invoice from when the car was purchased
• Finance documents, if applicable
• Fuel and oil
• Repairs and services
• Insurance
• Registration and Green Slip
• Others, e.g. car washes, entertainment system, Bluetooth setup, dash cam, etc.

The Logbook Method is a lot of work, and you will actually need receipts. However, the deduction can be much larger if your vehicle is used largely for work.

The Cents per Kilometre Method is better for smaller deductions, and you only need written evidence to support your claim, e.g. diary records of work trips.